6/7/2022 – MetroIntelligence Economic Update by P. DUFFY

MetroIntelligence Economic Update by P. DUFFY

May employment rises by 390,000, unemployment rate flat at 3.6 percent

Total nonfarm payroll employment rose by 390,000 in May, and the unemployment rate remained at 3.6 percent. Notable job gains occurred in leisure and hospitality, in professional and business services, and in transportation and warehousing. Employment in retail trade declined. Both the labor force participation rate, at 62.3 percent, and the employment-population ratio, at 60.1 percent, were little changed over the month, and both are 1.1 percentage points below their February 2020 values.


May service sector index falls to 55.9, lowest point since early 2021

In May, the Services PMI registered 55.9 percent, 1.2 percentage points lower than April’s reading of 57.1 percent. This is the lowest reading since February 2021, when the index also registered 55.9 percent. COVID-19 continues to disrupt the services sector, as well as the war in Ukraine. Labor is still a big issue, and prices continue to increase.


NAHB:  How a Home Purchase Boosts Consumer Spending

During the first year after closing on the house, a typical buyer of a newly-built single-family detached home spends on average $9,250 more than a similar non-moving home owner. Likewise, a buyer of an existing single-family detached home tends to spend over $5,240 more than a similar non-moving home owner, as a result of a home purchase.